The Analytical Overview of the Main Currency Pairs on 2018.01.15

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.20326

Open: 1.21925

% chg. over the last day: +0.19

Day's range: 1.21925 – 1.22118

52 wk range: 1.0341 – 1.2069

The EUR/USD currency pair reached a three-year maximum after the statements of the European Central Bank. On Friday, quotes increased by more than 150 points. At the moment, the EUR/USD currency pair is consolidating. The trading instrument has the potential for further growth. Support and resistance levels are 1.21900 and 1.22400, respectively. It is recommended to open positions if the price fixes above/below these marks.

The news feed on 2018.01.15:

- The trade balance of the Eurozone at 12:00 (GMT+2:00).

The signals of the indicators are ambiguous. The price has fixed above 50 MA and 200 MA, which indicates bullish sentiment.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell EUR/USD.

Trading recommendations

Support levels: 1.21900, 1.21250, 1.20450

Resistance levels: 1.22400, 1.23000

If the EUR/USD quotes continue to grow and fix above the resistance level of 1.22400, we recommend looking for entry points to the market to open long positions. The target movement level is 1.22800-1.23000.

Alternatively, the EUR/USD quotes may decline to 1.21500-1.21300.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.35361

Open: 1.37273

% chg. over the last day: +0.14

Day's range: 1.37326 – 1.37605

52 wk range: 1.1450 – 1.3618

On Friday, the British pound strengthened significantly against the US dollar, as a result the GBP/USD quotes increased by more than 190 points. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating. Correction is not excluded in the near future. The key trading range is 1.37250-1.37700. The positions must be opened from these marks.

The news feed on the UK economy is calm.

The signals of the indicators are ambiguous. The price has fixed above 50 MA and 200 MA, which indicates bullish sentiment.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which signals sales of GBP/USD.

Trading recommendations

Support levels: 1.37250, 1.36700, 1.35800

Resistance levels: 1.37700, 1.38000

If GBP/USD continues to rise and fixes above the resistance level of 1.37700, we recommend considering purchases. The target movement level is 1.38000-1.38300.

Alternative option. If the quotes fix below the support level of 1.37250, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 1.36850-1.36650.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.25190

Open: 1.24583

% chg. over the last day: -0.21

Day's range: 1.24318 – 1.24329

52 wk range: 1.2059 – 1.3795

On Friday, the USD/CAD quotes dropped significantly due to the weakening of the US dollar. The bearish trend continues on the USD/CAD currency pair. Quotes are being traded in the range of 1.24150-1.24600. It is recommended to open positions if the price fixes above/below these marks. The key event this week will be the meeting of the Bank of Canada.

The publication of important statistics on the economy of Canada is not planned today.

Indicators signal the power of sellers. The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

The MACD histogram is in the negative zone and continues to decline, which gives a signal to sell USD/CAD.

Stochastic Oscillator is near the oversold zone, the %K line is below the %D line. There are no accurate signals.

Trading recommendations

Support levels: 1.24150, 1.23850

Resistance levels: 1.24600, 1.25150, 1.25800

If the price continues to fall and fixes below the local support of 1.24150, we recommend considering sales of USD/CAD. The target movement level is 1.23850-1.23500.

Alternative option. If the USD/CAD quotes fix above the resistance level of 1.24600, it is necessary to look for entry points to the market to open long positions. The movement is tending potentially to 1.25000-1.25200.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 111.210

Open: 111.075

% chg. over the last day: -0.40

Day's range: 110.583 – 110.652

52 wk range: 99.53 – 118.67

Sales continue to prevail on the USD/JPY currency pair against the weakening of the US currency and the strengthening of the Japanese yen. At the moment, the support and resistance levels are 111.500 and 111.900, respectively. Positions should be opened from the key levels. We recommend paying attention to the US government bonds yield.

The publication of important economic reports from Japan is not planned.

The MACD histogram is in the negative zone, below the signal line, which gives a strong signal to sell USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.

Trading recommendations

Support levels: 110.500, 110.00

Resistance levels: 110.900, 111.650

If the price continues to fall and fixes below the local support level of 110.500, we recommend looking for entry points to the market to open short positions. The movement is tending potentially to 110.000.

If the price fixes above the resistance level of 110.900, we recommend considering purchases of USD/JPY. The movement is tending potentially to 111.300-111.500.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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